Preview

How Did Richard Scrushy, A Code Of Silence?

Powerful Essays
Open Document
Open Document
912 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How Did Richard Scrushy, A Code Of Silence?
Essay 1 In Order to pursue his dream, Richard Scrushy wanted to build a better future for him and his wife. After graduating from the University of Alabama, he obtained an entry level job at Life-mark Corp. Scurshy started from the bottom and climbed his way up to success. In 1984, Scrushy found HealthSouth, to providing a healthcare services for senior citizen and athlete. Soon after it opened it, started to attract costumers including famous athletes. Scrushy to become one of the most successful business executive. But not every business obtains their position on top. Scrushy used to manipulate and use creative methods to lie and cover his back when HelathSouth start losing a lot of patients and money. The positive affect …show more content…
Scrushy had complete control over the company, and to make sure no-one of his employees would go out of line, he installed a security camera all over his company, track e-mail messages, phone conversations, and locations of employees and board members to keep them in line, From the outside of the company, the internal audit committee did not do their duty of proper checking on the company and allowed for the fraud to …show more content…
And if he was found guilty, Scurshy would face years in prison and up to $36 million fines. Scurshy still not admitting that he is guilty, Scurshy wrote littler in attempt to “clean his name," and in the article writing by Carrie Johnson for Washington Post Staff Writer, that Scrushy appeared on T.V program were he blames a small level of employees. And that it was their ideas to build this scheme. Some witnesses told that Scrushy would hold meetings in order to find out how to fill the gap between the earning number and the expatiation number. Many of the employees have lost their job because HealthSouth started cutting jobs and sold some of its facilities, while being over $3.4 billion in

You May Also Find These Documents Helpful

  • Powerful Essays

    AU 240

    • 2166 Words
    • 7 Pages

    Top-level employees manipulated transactions and the financial statements to minimize expense recognition. This was accomplished through a variety of ways. These ways include: “Avoided depreciation expenses on their garbage trucks…, assigning arbitrary salvage values to other assets…, failed to record expenses for decreases in the value of landfills as they were filled with waste, refused to record expenses necessary to write off the costs of unsuccessfully and abandoned landfill development projects, established inflated environmental reserves (liabilities)…, improperly capitalized a variety of expenses, and failed to establish sufficient reserves (liabilities) to pay for income taxes and other expenses.” (Beasley, pg. 106) The SEC determined that these fraudulent practices were executed at the executive level. These transactions were manipulated or perpetrated at company headquarters.…

    • 2166 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Healthsouth Memo

    • 1333 Words
    • 6 Pages

    On March 19th 2003, the Securities and Exchange Commission filed civil fraud charges against HealthSouth and CEO and Chairman Richard Scrushy of “allegedly duping investors into believing the company had met earnings targets” (washintonpost.com staff, 2004). The SEC’s complaint “alleges that since 1999, at the insistence of Scrushy, HealthSouth systematically overstated its earnings by at least $1.4 billion in order to meet or exceed Wall Street earnings expectations. The false increases in earnings were matched by false increases in HealthSouth’s assets. By the third quarter of 2002, HealthSouth’s assets were overstated by at least $800 million, or approximately 10 percent” (sec.gov, March 19th 2003). Leading officials at the healthcare giant became entangled in the scandal as well as auditors at the time of the scandal, Ernst & Young and investment bankers, UBS (Freudenheim, 2004).…

    • 1333 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Dick Spencer was an employee of the Tri-American Company who had been with the organization for fourteen years. Starting out as a successful salesman straight out of college, he quickly worked his way up the ladder into different managerial positions. Using several articles for support, this case analysis will examine the leading factors with regards to his success as a sales person, as well as the critical issues that led to his failure and tribulations as a manager. Finally this case analysis will provide recommendations with supported evidence on how he could have been a more effective manager. The purpose of this case analysis is to determine why he was effective as a salesperson but lacked the ability to successfully manage and lead people as he transitioned from one position to another.…

    • 4203 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Richard Scrushy Case

    • 480 Words
    • 2 Pages

    Growing ups Selma Alabama, Richard Scrushy like any normal teenager found him self thinking about a better opportunity and life for him and his wife. After graduating from University of Alabama, Scrushy started from an entry level position, to owning his own company called HeathSouth, INC. By 2001 HealthSouth had more then 4.3 billion and 100,000 patients a day. But all good thing come to end, when Scrushy found himself in schooled that put his career to end.…

    • 480 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Health South

    • 2639 Words
    • 11 Pages

    Lifemark was acquired in 1983 and Mr. Scrushy framed an idea for a company that offered outpatient rehabilitation services for less expense and a quicker recovery time for patients. This conception became an actuality and Scrushy formed HealthSouth (Kellion, 2007). Employees often described Mr. Scrushy as a tyrant. He was described as someone who sought to maintain tight control over aspect of the business. Jennings (2012) indicated employees used fictitious names as they posted information on Yahoo describing Mr. Scrushy’s management approach. Mr. Scrushy’s Monday morning meetings frequently resulted in tirades about employees not meeting budgets, even to the dollar. Jennings (2012) implied one officer described the corporation as fraudulent in which…

    • 2639 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    When looking at the case, one can agree with this indication. Many people in both in high and lower positions did not speak up, even when they suspected or witnessed unjust activity. Some did not want to be preserved as whistleblowers and did not want to put their job on the line. The next sign to this ethical lapse, is the “Young’uns and a bigger-than-life CEO.” Scrushy was a man in a very high position. Many of his employees feared him. He was intimidating and had even carried a gun in a brief case as well as bodyguards. He only looked at his own best interest and had little to no relationship with his employees and someone had even heard him say, “If we ever get caught I would blame them all and deny…

    • 856 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The Corporate Con

    • 1118 Words
    • 5 Pages

    In the movie the Corporate Con: The Internal Fraud and the Auditor there were several different people who seemed like your everyday "Joe," but were actually criminals who committed fraud. Some of the frauds committed in this movie were: Cash Fraud, Accounts Receivable Fraud, Expense Fraud, purchasing fraud, and corruption. Focusing on two individuals Pam and John, each of these criminals committed either cash or accounts receivable fraud.…

    • 1118 Words
    • 5 Pages
    Satisfactory Essays
  • Better Essays

    The problem begins with public perception. Buresh & Gordon point out a fundamental disconnect. The public trusts and respects nurses as caregivers but does not understand the professional standard or practice of nursing (Buresh & Gordon, 2006). Buresh & Gordon movingly quote Joan Lynaugh, nurse historian, “Most people know they can’t get into a hospital without a doctor. What they don’t know is…

    • 1678 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Silence...it’s a simple word that can hold so much over a person. A word that once it is said no longer describes itself. In Night, Elie Wiesel uses imagery, flashbacks, and characterization to explain how silence is forced, as well as broken into the people throughout the Holocaust. The inmates were forced to watch horrific events and became accustomed to it, many others did as well, such as the townspeople, who were used to seeing emaciated prisoners pushed through the towns. None of them said a word about it in public for they were also living in fear, whether they were conscious of it or not. Many people suffered and were forced to keep silent about the horrific events occurring in and outside of the camp. In Night, Elie Wiesel uses imagery, flashbacks, and characterization to show how silence is forced upon the prisoners.…

    • 1229 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Matt Grant Case Study

    • 1242 Words
    • 4 Pages

    Matt Grant is an ambitious businessman who has found himself at a critical life crossroad as he faces possible discharge from his corporate career while conceptualizing an innovative business endeavor. Trekking through a handful of failed corporate projects with the company he currently works for, he must decide whether he wants to play it safe and remain a corporate employee or take an opportunistic leap of faith in the business realm. Matt is not alone in his experiences. His wife journeys with him through his trials, and also experiences career setbacks as a result of Matt's past failures. Matt actively lays the foundation for his venture and puts a great deal of work in to his aspiring business concept. The Grants must make an abrupt, considerable life decision together which will affect their marriage, their financial situation, and their livelihood.…

    • 1242 Words
    • 4 Pages
    Better Essays
  • Good Essays

    “...Silence encourages the tormentor, never the tormented” This means that if you continue to stay silent, people will continue to be tormented, if you don’t stand to make a difference, the world will remain the same.…

    • 479 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    from a third party involved in collusion, which made the fraud harder to detect. The auditor’s in this case…

    • 700 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    This paper will examine the “blue code of silence” that has been the source of controversy and a major critique of policing. I will argue that it is unethical and not firmly planted largely in police culture; contrary to present day media outlet’s reports. I will first, define the term “blue code of silence” and discuss why it is unethical. I will continue by shedding light on recent reports, interviews, and publications that show that corruption is not as common in large departments as popular media outlets portray.…

    • 996 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Enron, at the time, was a legitimate energy company that delivered tangible goods. The two bosses of the company, Enron, were Jeff Skilling and Ken Lay. They also had companions that contributed to this disgraceful activity as well. Jeff and Ken were caught constantly lying about everything. They corrupted all of the six factors of an ethical leader and the six pillars of characters, but in this particular incident, they corrupted honesty and trustworthiness. The company and its owners strived firmly on no interference from the government. To most people, this is better known as “Laissez faire”, which is, “The practice or doctrine of noninterference in the affairs of others” (dictionary.com). Due to the fact that there was no government interference, it made Jeff and Ken very believable, thus the reason why they were so convincing until the stock market collapsed. After it collapsed, both Jeff and Ken tried to put the blame on Andy Fastow, who was the CFO that Jeff had hired. Fastow was guided by others involved on the deal and had no idea what was going on. The bosses, Jeff and Ken, were not honest with him about the company before they hired him; later on, this also made them not trustworthy. Fastow was the only one that did not know what was going on so it made sense for the Jeff and Ken to put the blame on him because Fastow was responsible for the paperwork. In…

    • 947 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Lack of strong internal accounting controls that enabled the falsification of accounts and fraudulent financial reporting…

    • 251 Words
    • 1 Page
    Satisfactory Essays